GlaxoSmithKline and Pfizer agree £10bn healthcare merger

GlaxoSmithKline and Pfizer agree £10bn healthcare merger

GlaxoSmithKline (GSK), is to merge its consumer healthcare unit with that of rival Pfizer, to create a new business with almost £10bn in annual sales.

The UK pharmaceutical firm – behind many well-known brands including Aquafresh toothpaste and Beechams cold and flu remedies – said it would control 68% of the joint venture which “lays the foundation” for it to spin off its healthcarearm.

It planned to create two separate UK-based companies – one focused on pharmaceuticals and vaccines and the other on consumer healthcare – within three years of completing its tie-up.

GSK said the merger was set to deliver cost savings of £500m by 2022, with a quarter of that sum to be reinvested in the business.